Taconic Proteges Warn Of Possible Wide-Spread Carnage Ahead

Value-oriented long/short equity fund Altalis Capital is having a tough year. According to the firm’s third-quarter letter to investors, a copy of which has been reviewed by ValueWalk, for the third quarter the firm lost 1.3%, dragging the performance for the year down to -0.3% net. [munger] According to the letter, the firm, which was founded by Adam Fox and Samuel Elder, who were previously partners and co-heads of North American equity investing at Taconic Capital (following a career at Goldman Sachs) generated profits from its bearish (more on that below) short holdings during the quarter, but long positions produced…